Coal divestment bill passes California state legislature

A bill requiring California's state pension funds Calpers and CalSTRS to sell their investments in coal companies passed the Assembly on Wednesday, a major step for legislation that backers hope will inspire other funds to address climate change.

The bill, which passed by a vote of 43 to 27, would require CalPers and CalSTRS - public employee pension funds that manage a combined $476 billion in assets - to liquidate holdings in companies that generate at least half of their revenue from coal mining by July 2017.

CalPers invests in about 20 to 30 thermal coal mining companies valued at approximately $100 million to $200 million, a spokesman said. Coal companies it invests in include Peabody Energy and Arch Coal, according to its latest investment report. Neither company was immediately available for comment.